Being able to look into the future seemed a pipe dream for businesses not so long ago: the best that could be achieved in terms of planning ahead was basically educated guesswork.
Inevitably this was beset with issues since trends can change quickly and unexpectedly: customer habits and priorities change, the business arena they’re operating in maybe won’t be the same a couple of years from now, and many more variables that could only be speculated on.
The advance in data techs such as machine learning and skilled data analytics experts using powerful data mining and analysis tools means looking ahead and being able to plan for the future based on more solid information is possible through predictive data analytics.
Your virtual crystal ball
The benefits of predictive analytics for forward planning based on more solid information are obviously huge:
• Respond to the market – knowing how your market will evolve means future product and service offerings can be developed accurately and in good time
• Marketing – planning campaigns is far more effective when you have predictive data analytics based on past activities to inform future plans and strategies
• Fraud detection – predictive analytics can flag up not just fraud taking place at that moment but potential future issues
• Improve productivity – predicting where possible future production issues may occur to enable advanced planning to head these off
• Business intelligence – knowing ‘which way the wind will blow in the future in your business arena helps in strategic planning; predictive analytics has a key role here
• Risk profiling – judging whether, for example, to enter a particular marketplace or analyse which customers are acceptable risk such as when extending credit
How is predictive analytics undertaken?
It’s a highly skilled and advanced form of data analytics involving highly trained and experienced experts such as data scientists using powerful tools covering data modelling, machine learning and data mining.
Machine learning is used on huge amounts of data to help the hardware literally ‘learn’ how to develop algorithms so as to help make useful future predictions and find answers to business-related questions.
How can your business get involved with predictive analytics?
To put this powerful form of data analytics to work in your business, you’d likely need expert help in the form of experienced data analytics professionals. They have the skills and tech to help you find the answers from your data.
Naturally, you need not only plenty of data to work from, but also a coherent data strategy, so when engaging professional expertise it likely starts here and you’ll receive plenty of advice and recommendations as to how to store and manage your data so it can be worked on effectively.
Your chosen data analytics professionals will want to know and fully understand your business objectives and the types of questions regarding the future you want answers to. Armed with this information they’ll tailor their predictive analytics service accordingly.
Choose your expert carefully as predictive data analytics is a key way to help you boost productivity and grow your sales going forward.
